Quote:
Originally Posted by elphenor
that's the marginal tax rate
meaning anything over 60k a year is taxed at 60%
which is an astronomical difference, however it's a common mistake
for a long period of US history we had a 90% marginal on income over 200k
but in both cases it's important to consider that nobody pays the top marginal rate straight up, deductions a plenty
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Not really. That's a fairly low threshold. Deductions are overrated as well, which is why smaller businesses struggle to turn any kind of profit in those countries and eventually move to Ireland or wherever they aren't taxed to oblivion.
I had a professor way back when who said that one of the reasons we have so many loopholes and problems in our own tax code was because those marginal top rates were so high for such a long time so the rich got sneakier to find ways to skirt around them. He didn't blame FDR directly, but I think that might have been his underlying point.